Vol. 147, No. 20 — September 25, 2013
SOR/2013-156 September 6, 2013
EXPORT AND IMPORT OF ROUGH DIAMONDS ACT
Order Amending the Schedule to the Export and Import of Rough Diamonds Act
The Minister of Natural Resources, pursuant to section 3 of the Export and Import of Rough Diamonds Act (see footnote a), makes the annexed Order Amending the Schedule to the Export and Import of Rough Diamonds Act.
Ottawa, August 14, 2013
Minister of Natural Resources
ORDER AMENDING THE SCHEDULE TO THE EXPORT AND IMPORT OF ROUGH DIAMONDS ACT
1. The schedule to the Export and Import of Rough Diamonds Act (see footnote 1) is amended by deleting the following:
- Central African Republic
- European Community
2. The schedule to the Act is amended by adding the following in alphabetical order:
- European Union
COMING INTO FORCE
3. This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
The Kimberley Process (KP) is an international agreement between diamond-producing and -trading countries (Participants), representatives of civil society and industry that was negotiated to prevent conflict diamonds from entering into legitimate diamond trade. Conflict diamonds are those diamonds sold by rebel forces to purchase arms for use in conflict against legitimate governments. The KP came into force on January 1, 2003.
Under the Kimberley Process Certification Scheme (KPCS), all exports of rough diamonds must be accompanied by a certificate (issued by a participating government or an agency authorized by that government) confirming that shipments of rough diamonds are free from conflict diamonds. Trade in rough diamonds can only occur between Participants. In order to be a Participant, governments are required to have appropriate legislation in place that allows for adequate enforcement of the terms and conditions of the Scheme.
In order for Canada to meet its obligations as a Participant in the KPCS, new legislation and regulations needed to be put in place. On December 12, 2002, the Export and Import of Rough Diamonds Act (EIRDA) was passed into law and permitted Canada to begin implementation of the certification scheme on January 1, 2003.
Pursuant to section 3 of the EIRDA, the Order is designed to amend the Schedule to the Act, which is required to bring it into agreement with the KP list of Participants.
Since January 1, 2003, the EIRDA, which provides the Minister of Natural Resources the authority necessary to fulfill Canada’s commitments under the KPCS, is in force in Canada. Participation in the KPCS is essential in order for Canadian producers and users of rough diamonds to export and import those goods internationally and remain competitive.
Since the last amendment to the Schedule in March 2009, the number of Participants to the KPCS has grown to 54 (with the European Union itself representing 27 European countries). As a result of the enactment of the necessary decrees or legislation to participate in the Scheme, the following countries have now met the minimum requirements of the certification scheme and have since been added to the KP list of Participants: Cambodia, Cameroon, Kazakhstan, Panama and Swaziland. In addition, the European Community, which is already a Participant of the KP, has notified the KP Chair that it requires a change to be made to its designation on the KP list of Participants, to that of European Union, to better represent its status as a Participant. Finally, on account of armed conflicts in the Central African Republic that have resulted in the breakdown in internal controls, the latter country has been temporarily suspended from the Scheme and must therefore be removed from the Schedule.
Amending the Schedule to the EIRDA is an administrative requirement which does not represent changes in policy or in regulations which elicit or require comment. Upon approval by the Minister of Natural Resources, the amendment may be submitted and published in Part II of the Canada Gazette without prior submission for comment in Part I of the Canada Gazette.
Changes to the Schedule of the EIRDA are required for Canada to remain in compliance with the minimum requirements of the Scheme. To be in breach would negatively impact the profitability and the level of employment in Canada’s diamond mining industry and the economy in general.
7. Implementation, enforcement and service standards
Failure to comply with the EIRDA, or its related regulatory or other requirements, may lead to prosecution. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of the EIRDA.
Senior Policy Advisor — Diamonds
Industry and Commodity Analysis Division
Minerals and Metals Sector
Natural Resources Canada
580 Booth Street, 10th Floor